Kotak Life leases 1.5 L sq ft space in Tata Realty's tower

Mumbai: Kotak Mahindra Life Insurance Company has picked up over 1.5 lakh sq ft office space in Tata Realty & Infrastructure's information technology park TRIL IT 4 in Mumbai's western suburb of Malad through a long-term lease of over 9 years, said persons with direct knowledge of the development.

The company will be paying rentals of ₹100 per sq ft a month, bringing its total pay-out to ₹162 crore over the term of the lease, excluding the rental escalations. The agreement includes a clause to increase rentals by 15% every three years. "The company has picked up the office space through two separate transactions, and the latest transaction was registered on Friday," said one of the persons mentioned above.

The leased office space will be utilised by the company to accommodate its processing operations. TRIL IT 4 already counts Tata Consultancy Services and Accenture among its key occupiers. Kotak Mahindra had acquired an entire commercial tower in this vicinity a few years ago and has also leased 400,000 sq ft more in Thane over the last couple of years.